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Newly selected Italian Prime Minister Enrico Letta has won a key vote of confidence in the lower house of Parliament after promising to focus on jobs and economic growth and reverse harsh austerity. "Italy is dying from austerity alone," he said. "Growth policies cannot wait." Letta says he will suspend an unpopular tax on primary residences and change the tax to make it fairer to those less wealthy.

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Influential figures in former Italian Prime Minister Silvio Berlusconi's People of Freedom party openly defied his call to force the collapse of the coalition government by pulling out of it. Berlusconi's deputy Angelino Alfano and other prominent party members called upon members of parliament to support the coalition government led by Prime Minister Enrico Letta in a confidence vote Wednesday.

As many as 20 members of former Italian Prime Minister Silvio Berlusconi's People of Freedom Party are reportedly threatening to leave the party rather than go along with his campaign to bring down the ruling coalition government that Prime Minister Enrico Letta leads. Letta has a strong majority in the lower house of parliament but needs the votes of Berlusconi's party to control the Senate. Fitch Ratings said a lengthy period of uncertainty over Italy's fiscal and economic policies could lead to a credit downgrade for sovereign debt.

The abrupt resignation of five Italian government ministers from former Prime Minister Silvio Berlusconi's center-right party left the ruling coalition headed by Prime Minister Enrico Letta in crisis. Letta said he will ask parliament for a vote of confidence, probably Wednesday, to clarify the government's situation. The International Monetary Fund has said tensions in the governing coalition are a "key risk" confronting Italy's economic recovery.

France and Italy have taken a common stand in support of a proposed shift to policy aimed at boosting growth and employment, rather than relying mainly on austerity. After meeting in Paris with Italian Prime Minister Enrico Letta, French President Francois Hollande said austerity alone is "no longer enough". Letta says if Europe isn't seen as supporting opportunity and growth, "this will become a big democratic problem".

After an inconclusive election in Italy brought about a two-month political stalemate, President Giorgio Napolitano swore in a Cabinet headed by Prime Minister Enrico Letta. The coalition government is made up of ministers from Letta's Democratic Party, former Prime Minister Silvio Berlusconi's People of Freedom party and former Prime Minister Mario Monti's centrist Civic Choice party, as well as several members not affiliated with any party.